Swiss Life made further operational progress in 2017: adjusted profit from operations increased by 5% to CHF 1475 million. Net profit rose by 9% to CHF 1013 million. All units developed positively and increased their contribution to the result.
In the Swiss domestic market, Swiss Life grew its segment result by 2% to CHF 829 million. In France, the segment result came to CHF 261 million, 7% higher than the previous year. Germany contributed CHF 153 million (plus 22%) and the International market unit generated a segment result of CHF 51 million (previous year: CHF 45 million). Swiss Life Asset Managers increased its segment result by 6% to CHF 258 million.
Swiss Life generated stable direct investment income from insurance business of CHF 4.3 billion in 2017. That corresponds to a direct investment return of 2.8% (previous year: 3.0%). The net investment yield came to 2.5% at the end of 2017 (previous year: 3.3%).
The Swiss Life Group increased fee income in local currency by 8% to CHF 1480 million in 2017. This growth stemmed from higher contributions from own and third-party products and services, Swiss Life Asset Managers and owned IFAs. Swiss Life posted a 6% rise in premiums in local currency to CHF 18.6 billion in 2017. Insurance reserves to the benefit of the company’s policyholders rose by 4% in local currency.
Swiss Life Asset Managers had a total of CHF 224 billion (plus 10%) under management as at 31 December 2017, CHF 61 billion of which was third-party asset management – a growth rate of 24% over the previous year.
Swiss Life’s segment reporting is on a country basis: Switzerland, France and Germany. It also discloses separately the results of its cross-border segments: International and Asset Managers.
Events after the reporting period
There were no events after the reporting period.
Key figures for the Swiss Life Group
|Amounts in CHF million||2017||2016||+/-|
|GROSS WRITTEN PREMIUMS, POLICY FEES AND DEPOSITS RECEIVED||18 565||17 366||7%|
|Net earned premiums||12 791||13 228||–3%|
|Fee and commission income||1 469||1 351||9%|
|Financial result||4 395||5 062||–13%|
|Other income||113||143 1||–21%|
|TOTAL INCOME||18 769||19 784 1||–5%|
|Net insurance benefits and claims||–13 189||–14 064||–6%|
|Policyholder participation||–949||–1 325||–28%|
|Interest expense||–144||–162 1||–11%|
|Operating expense||–2 842||–2 764 1||3%|
|TOTAL EXPENSE||–17 292||–18 393 1||–6%|
|PROFIT FROM OPERATIONS||1 476||1 391 1||6%|
|NET PROFIT||1 013||926||9%|
|Equity||15 583||13 739||13%|
|Insurance reserves||171 649||159 899||7%|
|Assets under management||245 675||222 916||10%|
|Assets under control||269 255||243 255||11%|
|Return on equity (in %)2||9.3||9.6||–0.3 Ppkt.|
|Number of employees (full-time equivalents)||7 979||7 801||2%|
2 Equity excl. unrealised gains/losses on bonds